Stock Market Investors/Traders

[Hikapo]

Hello fellow DJs, I am an avid stock market trader. Can fellow DJs that like to invest/trade in the stock market holla here?. I know Julius like penny stocks.


I mainly trade mid to large cap stocks. Also looking at options and forex.:cheer: :cheer: :cheer:

Current plays: Silver.

The FED announced QE2, market is bullish. Pretty crazy I say.

 

[Gaucho]

lol be a trader at your own peril. I have done so for years and 99% loose.

There is money to be had, but you are competing against the smartest men on the planet, with a distinct disadvantage with spreads, brokerage, costs of data etc.

"Investing" far more likely to 'beat the market' if you know how.

GL

 

[cordoncordon]

There are many many stock threads here. I have started many of them, and a few others have as well. Look for them in this Anything else section. I trade/daytrade stocks for a living, usually making low to mid 6 figures each year. Also like you, I live in CA.

 

[mpimpin]

I have a few long term investments, and day trade on a simulator for an investments class right now. With my simulation my focus has been on metals. With my own funds I'm taking a more conservative approach in a mutual fund. Thinking about moving into holding physical gold and/or silver. The latest round of QE really has me nervous

 

[Julius_Seizeher]

For me, QE2 just confirms that I should keep on doing what I'm doing: COMMODITIES. I'm not buying them directly, but I'm buying stocks at the beginning of commodity supply chains (miners).

I like to buy junior mining companies on the OTC with huge (confirmed) underground assets, sound management, good share structure, and strong potential of a JV contract with a big mining company. That's how the big miners you see on the NASDAQ and NYSE got their start: they staked a claim and proved up a big deposit of what have you, then obtained a JV with a big company to finance getting it out of the ground. Then they snowball, bigger and bigger. Miners are made by standing on the shoulders of giants.

I'm not in love with all commodities, though. I like precious & industrial metals, REEs, and agriculturals. Specifically:

Gold
Silver
Copper
Niobium
Molybdenum
Uranium
Potash

There's also money to be made in oil drillers, but I haven't DD'd it yet.

Obviously, I'm not a trader, but an investor. This part of my portfolio represents my risk money, I'm focused on building it before I do anything else in the market. I might consider trading sometime, but Warren Buffett didn't build his fortune by jumping in and out of stocks and paying ridiculous short-term capital gains taxes.

 

[Evzone]

For me, QE2 just confirms that I should keep on doing what I'm doing: COMMODITIES. I'm not buying them directly, but I'm buying stocks at the beginning of commodity supply chains (miners).

...

I'm not in love with all commodities, though. I like precious & industrial metals, REEs, and agriculturals. Specifically:

Gold
Silver
Copper
Niobium
Molybdenum
Uranium
Potash

I'd add to your list platinum and palladium. I was watching a speech by Nassim Nicholas Taleb a while back (author of Black Swan and Fooled By Randomness, both must read books for anyone interested in seriously becoming a trader as a full time job), and he was saying that gold has a risk to it in that central banks and gov'ts can dump gold if need be. They can't dump platinum and palladium since they don't have it in the first place.

Right now I'm shorting 30-year US treasuries as well. There's some ETFs that do that, and my favorite are TBT and TMV.

 

[BigJimbo]

There are many many stock threads here. I have started many of them, and a few others have as well. Look for them in this Anything else section. I trade/daytrade stocks for a living, usually making low to mid 6 figures each year. Also like you, I live in CA.

And you are also laughed off horse betting sites. Everyone is a worth a billion and famous online. Take that money and your computer and move to a place like Kyiv, Riga, Tallinn, or even Prague. You could be making money and living a life that NO MAN can live in CA.

 

[mpimpin]

For me, QE2 just confirms that I should keep on doing what I'm doing: COMMODITIES. I'm not buying them directly, but I'm buying stocks at the beginning of commodity supply chains (miners).

I've been investing in mining companies, but do you feel confident that that is enough with the latest round of QE2 and probable inflation? lately I'm wondering if holding the physical asset itself will provide better yields than investing in miners. Granted I think the mining securities will be fine and provide a decent return I just wonder if I could capitalize more through holding physical assets.

 

[Hikapo]

Interesting. The dollar will keep dropping to the 2008 financial crash lows. The QE2 is met by a optimism.


Does anyone like dividend paying investment funds?
Cornerstone Progressive Return Fund(CFP)

They pay 17% Dividend yield.

 

[Hikapo]

I'd add to your list platinum and palladium. I was watching a speech by Nassim Nicholas Taleb a while back (author of Black Swan and Fooled By Randomness, both must read books for anyone interested in seriously becoming a trader as a full time job), and he was saying that gold has a risk to it in that central banks and gov'ts can dump gold if need be. They can't dump platinum and palladium since they don't have it in the first place.

Right now I'm shorting 30-year US treasuries as well. There's some ETFs that do that, and my favorite are TBT and TMV.

I have heard of that book. I am going to go check it out.

 

[Julius_Seizeher]

I've been investing in mining companies, but do you feel confident that that is enough with the latest round of QE2 and probable inflation? lately I'm wondering if holding the physical asset itself will provide better yields than investing in miners. Granted I think the mining securities will be fine and provide a decent return I just wonder if I could capitalize more through holding physical assets.

Well I guess it depends on how you think in terms of risk vs. reward. The physical commodity itself will always be inherently more stable than an individual stock associated with that commodity, but the upside is nearly infinite on the stock whereas it's somewhat limited with the commodity.

For me it's all about the potential ROI expressed as a percentage. There is more potential for obscene ROI % with the stock than the commodity.

For instance, gold and copper have been on a tear lately, and I don't believe it to be a bubble as constantly insinuated by the pundits on CNBC. The demand for these commodities is real, it is driven by organic fundamental macroeconomic factors and not investor speculation, ala the CDO and CMO implosion of 2008.

Perfect example of where I'm coming from: in 2002 gold was probably around $300/ounce, and an unheard-of tiny mining company named Northern Dynasty (NAK) was trading around 20 cents a share. Gold is now knocking on the door of $1400/ounce, which represents a 400%-odd gain from 2002. However, NAK is now about to hit $10.00 a share, and they are just beginning to get permits; they haven't even made any money yet. Analysts are calling NAK anywhere from $20-$60 in the future.

What kind of ROI is that for a guy who bought NAK in 2002? A life-changing one.

So one of my favorite gold and copper miners (also moly and uranium) is in the process of JVing with Northern Dynasty on its prolific claims which border the famous Pebble Deposit in Alaska, already the largest gold and copper deposit in North America and will soon be proven to be the largest in the world. It is NAKs association with this deposit that has driven its stock price to where it is, and I'm betting my "little miner that could" will become the next NAK.

 

[seanj20]

any other book recommendations you guys have? I have a finance degree but i feel i did not learn enough about anything really with those text books we read in school DULL and CONFUSING... Anything you guys have to offer would be helpful. What books should i read. I'm looking for beginner/intermediate to advanced books. Work my way up. So what should i read. Thanks...

I want to be able to know it well so i actually LOOK and SPEAK like i know what the hell i'm talking about, and hopefully i'll actually know what i'm talking about cus right now its just not cutting it.

 

[Hikapo]

any other book recommendations you guys have? I have a finance degree but i feel i did not learn enough about anything really with those text books we read in school DULL and CONFUSING... Anything you guys have to offer would be helpful. What books should i read. I'm looking for beginner/intermediate to advanced books. Work my way up. So what should i read. Thanks...

I want to be able to know it well so i actually LOOK and SPEAK like i know what the hell i'm talking about, and hopefully i'll actually know what i'm talking about cus right now its just not cutting it.

Market Wizards - Jack Schwager ---> This book interviews all the greatest traders. Very good read.

Super Trader - K Van Tharp ---> This author is one of the legendary traders interviewed by Jack Schwager.


There are some others too, but I haven't read them.

 

[seanj20]

thanks Hikapo. If anyone else has more recommendations let me know.

 

[Gaucho]

Super Trader - K Van Tharp ---> This author is one of the legendary traders interviewed by Jack Schwager.

Van Tharp a legendary trader, where did you get that info from? A great writer, but I'm not sure a legendary trader....big difference.

It all depends what trading style you want to undertake and learn, statistical arbitrage, scalping (no good books on this I have ever seen), global macro, buy and hold longer-term strategy, quant i.e. box trading?

A lot of talk about holding physical commodities, remember, if your going to do so, at least hedge your currency exposure.

 

[Wiesman44]

What kind of ROI is that for a guy who bought NAK in 2002? A life-changing one.

QUOTE]

sorry, I'm a little confused. How is this a life changing ROI ?

 

[Julius_Seizeher]

sorry, I'm a little confused. How is this a life changing ROI ?

If you bought 50,000 shares of NAK in 2002, at a price of $10,000, your investment would now be worth about $500,000. And that's assuming you just bought once and didn't keep averaging on the way up.

When Pebble goes into production, the smaller companies doing business up there won't be so small anymore

 

[Mr.Positive]

What kind of ROI is that for a guy who bought NAK in 2002? A life-changing one.

QUOTE]

sorry, I'm a little confused. How is this a life changing ROI ?

Sounds life changing to me. Say you invest 10K at 20 cents a share...that's 50,000 shares.

If it goes up to $60 a share...that 10K is now 3 million bucks.

I'd quit work and retire then, hence it would be life changing!

EDIT: We posted at the same time Julius, and we both used 10k as our example, how odd is that?

 

[Julius_Seizeher]

The Lord works in mysterious ways, it's because he wants us to BUY MINING STOCKS and GET RICH!

Donating some profits to the Shrine Hospitals, of course.

 

[Hikapo]

Van Tharp a legendary trader, where did you get that info from? A great writer, but I'm not sure a legendary trader....big difference.

It all depends what trading style you want to undertake and learn, statistical arbitrage, scalping (no good books on this I have ever seen), global macro, buy and hold longer-term strategy, quant i.e. box trading?

A lot of talk about holding physical commodities, remember, if your going to do so, at least hedge your currency exposure.

I call him legendary because he is the master of training great traders to unleash their greatest potential. He has also done many different tests on the market with his 1 million bucks and make money. Try reading his books.

website---> iitm.com

He has his own website and training workshops.